L&P 4 Q

Question 1

The law that requires real estate contracts to be in writing to be enforceable is the:

Answer 1

statue of frauds

Question 1

What is the purpose of a quit claim deed?

Answer 1

To transfer title rights.

Question 2

According to the common law of agency, an agency relationship may be established by all the following EXCEPT:

Answer 2

implied agreement.

Question 3

F bought acreage in a distant county, never went to see it, and did not use it, although he regularly paid the real estate taxes on it. L moved his mobile home onto F’s property, drilled a well for water, and lived there for many years. L may have become the owner of the acreage if he has complied with the state laws regarding

Answer 3

adverse possession.

Question 4

he term “rescind” most closely means:

Answer 4

cancel.

Question 5

The recording of a deed:

Answer 5

gives constructive notice of the ownership to real property.

Question 6

A special warranty deed differs from a general warranty deed in that the grantor’s covenant in the special warranty deed:

Answer 6

applies only to a definite limited time.

Question 7

An owner takes his property off the market for a definite time-period in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price. This is called a(n):

Answer 7

option.

Question 8

Which of the following is acceptable as the evidence of good title?

Answer 8

Torrens certificate

Question 9

A bilateral contract is one in which:

Answer 9

the promise of one party is given in exchange for the promise of the other party

Question 10

Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first offer to the seller that evening. The broker did not inform the seller about the second offer so that the seller could make a decision about the first offer. Which of the following is true?

Answer 10

The broker has no authority to withhold any offers from the seller.

Question 11

An abstract of title does NOT provide evidence of title unless it is accompanied by a:

Answer 11

legal opinion of title.

Question 12

A void contract is one that is:

Answer 12

Not legally enforceable

Question 13

If, upon receipt of an offer to purchase his property under certain conditions, the seller makes a counteroffer, the prospective buyer is:

Answer 13

relieved of his original offer.

Question 14

Broker K arrives to present a purchase offer to D, an invalid, and finds her son and wife also present. In the presence of broker K, both individuals persistently urge D to accept the offer, even though it is much lower than the price she has been asking for her home. If D accepts the offer, she may later claim that:

Answer 14

she was under undue duress from her son and daughter-in-law, and therefore, the contract is voidable.

Question 15

Which of the following is NOT essential to the formation of a contract?

Answer 15

( ) A. Offer
( ) B. Acceptance
( ) C. Consideration
( X ) D. Performance

Question 16

When a prospective buyer makes a written purchase offer that the seller accepts, then the:

Answer 16

buyer receives equitable title to the property.

Question 17

H agrees to purchase V’s real estate for $230,000, and deposits $6,900 earnest money with broker L. However, V is unable to clear the title to the property, and H demands the return of his earnest money as provided in the purchase contract. Broker L should

Answer 17

return the entire amount to H

Question 18

After the seller countered an offer, another offer comes in at a higher sales price that the seller would like to accept. What can the seller do?

Answer 18

Rescind the counteroffer if it has not been accepted and accept the new offer

Question 19

The legal proceeding or legal action brought by either the buyer or the seller under a purchase contract to enforce the terms of the contract is known as:

Answer 19

specific performance

Question 20

A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all the following EXCEPT:

Answer 20

sue the broker for nonperformance.

Question 21

The essential elements of a contract include all the following EXCEPT:

Answer 21

notarized signatures.

Question 22

Title to real estate that is inherited from a person who died testate is referred to as a:

Answer 22

devise

Question 23

If the buyer defaulted some time ago on a written contract to purchase a seller’s real estate, the seller can still sue for damages if he is not prohibited from doing so by the:

Answer 23

statute of limitations.

Question 24

What is the purpose of the acknowledgment by a notary public on a deed?

Answer 24

To show the genuineness of the grantor’s signature.

Question 25

The type of deed in which the grantor defends the title back to its beginning is a:

Answer 25

general warranty deed.

Question 26

Title insurance protects the insured against:

Answer 26

past unknown title defects.

Question 27

When ownership cannot be documented from its origin to the present owner, establishing current ownership may require

Answer 27

a suit to quiet title.

Question 28

When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as:

Answer 28

subrogation.

Question 29

The title to real estate passes when a valid deed is:

Answer 29

delivered and accepted